Europe antitrust threats to MA & Visa interchange

Implications: Efforts by the EC and UK to stop cartel price fixing threaten bankcard interchange The threat will worsen if they allow private class actions to enforce antitrust standards.

Analysis: Although the EC has indicated it will not challenge the legitimacy of bankcard interchange, it has warned of actions to lower it as well as change the way it is determined.  Its primary targets will be Visa and MasterCard, not bankcard issuers.  Its recent aggressive price fixing efforts against other industries shows it is serious, especially when US companies are involved.  The UK is mimicing the EC and together they are determined to allow the private sector to share enforcement via class actions.   Any enforcement decision that holds Visa and MasterCard accountable for price fixing will threaten interchange globally, including in the US.